Third Quarter Trading update for the three months ended 30 September 2021

Assets under management rise to £56 billion, with £4.5 billion of gross new business year to date

Tilney Smith & Williamson is pleased to announce a trading update for the three months ended 30 September 2021.

Chris Woodhouse, Chief Executive, commented:

“The third quarter continued to see strong new business generation with £1.3 billion of gross new inflows in Q3 and £4.5 billion during the first nine months of the year - equivalent to an annualised growth rate of 11.8% on opening assets. Net flows were also positive, totalling £0.5 billion in Q3 and £1.8 billion since the start of the year.

“While assets under management are a key driver of our revenues, we also earn fees from our Professional Services business, Financial Planning and Fund Administration too. Collectively our businesses have generated operating income of £395.4 million during the first nine months of the year compared to £175.7 million over the same period in 2020 – demonstrating the significant uplift from the merger, as well as organic growth.

“Alongside healthy new business volumes, we have been actively recruiting additional talent across both Professional Services and Financial Services, with further hires on the way. With strong organic growth, the integration substantially completed and excellent progress being made with our key strategic initiatives, we are on track for a successful first full-year as a combined business.”


Highlights:

• Assets under Management (AUM) increased 9.2% to £56.0 billion during the first nine months of the year (31 December 2020: £51.2 billion).

• Gross new business inflows of £1.3 billion in the third quarter (Q3 2020: £0.6 billion), taking gross inflows during the first nine months of the year to £4.5 billion, representing 11.8% organic growth on an annualised basis.

• Net new business inflows were £0.5 billion in the third quarter (Q3 2020: £0.1 billion). Net inflows during the first nine months were £1.8 billion, representing 4.7% organic growth on an annualised basis.

• Group operating income was £133.5 million in the third quarter (Q3 2020: £74.0 million) and £395.4 million during the first nine months of the year reflecting the merger with Smith & Williamson in September 2020 and organic growth.

Assets under management and flows

Acquisitions and disposals include the sale of a non-core fund range and the acquisition of HFS Milbourne in H1 2021 and the addition of Smith & Williamson to the group in September 2020.


Operating Income ²

² 2020 operating income figures represent legacy Tilney Group but only a partial contribution from Smith & Williamson, following completion of the merger on 1 September 2020. Operating Income from Fund Administration is reported separately for 2021 and for 2020 was included in Professional Services.